- quote -

The IRS instructions for Schedule D (page D-7) say "If you
are reporting an average basis, include 'AVGB' in column (a)
of Schedule D." Column (a) is the description.

Bob Sandler

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- quote -

But they will be by 2012. It was in the bailout bill that passes last
October.
--
Don EA in Upstate NY

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In misc.taxes.moderated, j.x.a.peterson[at]gmail.com wrote:

- quote -

One thing that you might find for mutual funds is that many big fund
families will now track your basis for you, as long as you are using
the method they use. Typically they use "Average cost
(single-category)" method.

http://www.americanfunds.com/resourc...orms/1099b.htm

https://ww4.janus.com/Janus/Retail/S.../CostBasis.jsp

http://personal.fidelity.com/global/...basis%20single

https://personal.vanguard.com/us/pla...sisContent.jsp

This is by no means a complete list of funds families that do this,
and I am not sure that I interpret their web sites correctly. I
think they will tell you what the average basis was, using their
method, when you sell shares. They are not required to do so.

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When do you have to specify to the IRS which method you're using to
calculate cost basis for stocks and mutual funds, what exactly do you
need to say, and where on the return does it go?

Are there "default" methods where you don't need to specify? FIFO for
stocks, average cost basis for mutual funds? My practice of always
using these respective methods and never reporting (nor changing)
which one I've used seems to have worked without a hitch so far.

JP

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >